President Donald Trump’s actions have significantly disrupted the global economic landscape, causing widespread concern among economists and investors. David McWilliams, a Dublin-based economist with expertise in international trade, warns that the US is “turning its back” on its trading partners and jeopardizing its position as a dominant global player.
McWilliams attributes this shift to Trump’s aggressive trade policies, including his “terrifying” Oval Office meeting with Ukrainian President Volodymyr Zelenskyy. He believes Trump’s actions are driven by a misguided ideology that prioritizes tariffs over economic coherence. As a result, the US is likely to retreat from its traditional allies and engage in a new era of great power competition.
The economic consequences of this shift are far-reaching. Investors are advised to steer clear of the US market due to increasing risk, while European stocks are poised for gains driven by German-led fiscal expansion. McWilliams predicts that the American economy will slow, potentially imposing discipline on the administration and limiting its ability to implement policies.
McWilliams’ concerns are echoed by historical precedent. He notes that previous attempts to remake the world order have ended in catastrophic failure. The US is now facing a daunting task: restoring government capacity eroded by the Trump administration’s policies, including Elon Musk’s Department of Government Efficiency.
With global economic instability on the rise, one thing is clear: Trump’s U-turn has set the stage for a significant shift in the global economic order.
Source: https://qz.com/donald-trump-trade-war-tariffs-economy-stocks-markets-1851771275